Safety

Bobtail Insurance for Semi-Truck Drivers

When you purchase a semi-truck, one of the first things you must do is get it properly insured. This involves getting primary liability insurance, as well as considering bobtail insurance.

Many drivers overlook Bobtail insurance, also known as non-trucking liability insurance. While it’s not always necessary to own a truck, this insurance can add significant value if you’re involved in a semi-truck accident while not driving on a delivery route.

This guide explores exactly what non-trucking liability insurance is, what it covers, and whether you should get bobtail insurance for your semi-truck.

What is Bobtail Insurance Coverage?

Bobtail insurance protects commercial truck drivers when operating their trucks without a trailer or cargo. It’s sometimes also referred to as non-trucking liability insurance.

Bobtail insurance is important because most commercial trucking insurance policies only provide coverage when the truck is driving or hauling freight. However, all kinds of possible issues could happen to your semi-truck while it’s not in action – which is when bobtail liability insurance will cover you.

Bobtail insurance is a different product from primary commercial trucking insurance. Primary insurance covers the truck while it’s engaged in commercial activities, such as hauling cargo. Bobtail insurance specifically covers the truck during non-business use or when it’s operating without a trailer.

Having both primary commercial truck insurance and non-trucking liability insurance provides complete coverage for your vehicle.

What Does Bobtail Insurance for Semi-Trucks Cover?

Insurance policies change with each broker, so each bobtail insurance plan is unique. However, bobtail liability insurance typically provides two main areas of coverage.

Non-Commercial Use

Bobtail insurance covers situations when a commercial truck is being driven for non-business or personal use. For example, if a trucker is driving the tractor (the front part of the truck) without a trailer for personal reasons, like going home after delivery, this coverage can protect them.

Bobtail insurance can also provide coverage for a parked semi-truck when it’s not in commercial use. Many commercial truck insurance companies only offer coverage when the truck is in active service.

Liability Coverage

The main focus of bobtail insurance is on liability protection. This type of truck insurance can help cover the costs if the truck driver is involved in an accident while not hauling a trailer and they are found to be at fault. This includes bodily injury and property damage liability. Truckers must have proper liability coverage at all times.

Who Needs Bobtail Insurance?

Anyone who owns a semi-truck can benefit from having non-trucking liability insurance.

This is especially true if you’re an owner-operator, as you’ll probably drive your truck’s trailer non-commercially at times. As your semi-truck is such a valuable asset, you’ll want to make sure it’s adequately insured at all times – which is why bobtail insurance is so valuable.

Trucking companies or truck lease agreements might sometimes require bobtail insurance. So, some truck drivers may need to take out a bobtail insurance policy to buy a semi-truck. You could get bobtail insurance coverage for a single commercial vehicle or this non-trucking liability coverage for an entire fleet.

If you often drive your truck without a trailer, then getting bobtail insurance is worth considering. Bobtailing is also known to be more dangerous than driving a loaded truck, so having this coverage can add a great deal of value. Without it, you may have to pay enormous legal fees and damages costs in the event of an accident.

Even if it’s not legally mandated, it’s a good idea for truckers who operate their vehicles without trailers to have this coverage to avoid potential financial risks.

How Much Does Bobtail Insurance Cost?

As with any commercial vehicle insurance policy, the cost of non-trucking liability insurance depends on various factors. These are mainly focused on:

Your personal driving history: It’s more likely for truck drivers with a longer driving record and more experience with a CDP to get lower premiums on their non-trucking liability insurance.
Usage: How long you plan to need bobtail liability insurance based on how often you drive without a trailer will be considered. The more you bobtail, the more expensive your insurance premiums could be.
Insurance history: Any bobtail insurance company considers past insurance claims and policies to understand your risk profile.
Your coverage limits: Of course, the amount you want to be covered up to in liability costs dictates how much you’ll pay for your bobtail truck insurance. The higher your coverage is, the higher your costs will be.

So, the cost of bobtail insurance can vary greatly depending on the driver’s circumstances. Different bobtail insurance companies will also charge differently.

However, East Insurance Group says drivers often pay around $400 to carry bobtail insurance. Temporary bobtail insurance policies are also available at lower annual premiums.

Where to Find Bobtail Truck Insurance

Many commercial vehicle insurance providers offer bobtail coverage. Most insurers provide quotes on their websites. It’s also worth looking into insurance comparison sites to see what bobtail and trucking liability insurance options are available. This also makes it easy to compare quotes.

Take a look at our roundup of the top commercial truck insurance brokers to help you find the best bobtail insurance coverage.

Conclusion

While saving money on insurance costs may seem attractive, being caught short without insurance can be an absolute killer for your trucking business. This is why it’s essential to consider non-trucking liability insurance if it makes sense for your situation.

You might even need non-trucking liability insurance to purchase a semi-truck in the first place.

If you’re looking to buy a new truck, contact us at Mission Financial Services. We make it easy for all commercial truck drivers to gain financing for their ideal semi-truck.

How To Handle A Fatal Semi-Truck Accident

Handling a fatal semi-truck accident is more complex than handling an accident involving regular cars.

Semi-trucks are subject to strict regulations that may not apply to regular cars. You must comply with all the FMCSA semi-truck accident regulations to be safe.

Additionally, more than one party can be liable for the crash. You need to handle the truck accident in a way that protects your rights to compensation for all injuries and damages incurred.

There are nine steps you should take to abide by the law and optimize your chances of maximum compensation. This will help you deal with the aftermath and get back on track sooner.

Handling a Fatal Semi-Truck Accident: 9 Steps

Some truck accidents lead to severe injuries or fatalities. It can be terrifying, but you must stay at the accident scene and avoid panicking.

If you leave the accident scene before following due process, you risk losing your truck driving license or having criminal charges filed against you. Doing this also reduces your chances of getting compensated for any damages. Here’s how to handle a fatal semi-truck accident correctly.

At The Accident Scene

Step 1: Confirm That Everyone is Safe

In a fatal truck accident, your safety and that of your passengers should be your top priority. If you’re injured, stay still until help arrives. If you’re uninjured and can move, check on other occupants of your truck and occupants of other vehicles involved.

Avoid moving any injured victims, as it may make their condition worse.

Step 2: Call Emergency Services

Call 911 to get first responders dispatched to the accident scene as soon as possible. In most states, calling the police to the scene and filing a report is mandatory if the crash led to severe injuries, multiple fatalities, or extensive damage to vehicles.

When dealing with the authorities and any other party approaching you, words matter. Be careful not to admit fault to anyone in any way when giving an account of what happened. Anything you say throughout the investigation can work as evidence against your claim.

Step 3: Collect Evidence

Start building your case by documenting the accident scene. Take pictures of the damage incurred to use as evidence when proving your claim to insurers or the court should your case get to trial. Specifically, take photos of the following:

Your semi-truck and the damage sustained
The other vehicles involved in the crash
Skid marks, shattered glass, and other physical evidence on the ground, such as car parts
Landmarks and street signs to show the location of the truck crash

Often, fatal truck accidents cause a traffic build-up and are newsworthy. You might get tempted to share photos of the scene on your social media pages, but don’t do it. Your online post could weaken your claim and reduce the settlement amount.

Step 4: Get Information on Those Involved

It’s also critical for you to get the details of everyone involved in the crash. In an accident including another semi, pickup, and a cab, the following info may come in handy:

Drivers’ names and addresses
License number of the other semi-truck driver plus the trucking company they work for
The plate number of the semi and further identifying details like the make or model
Insurance company info, including policy number
Eye witnesses’ names, phone numbers, or addresses
Generally, the more information you get, the easier it is for you to file a personal injury claim correctly if you were not the at-fault party.

After The Accident

Step 5: Seek Medical Evaluation and Document Treatment

Seek medical evaluation even if you feel fine. Keep all medical records, including your expenses, safely. You may need these to submit with your claim.

As a company truck driver, you must take post-accident alcohol and drug tests following applicable federal alcohol testing requirements. Your employer is required by law to ensure this happens.

Step 6: Get The Vehicle Appraised

If you’re an independent truck driver or owner-operator, get your semi-truck appraised to evaluate the damage and estimate the repair cost. Ensure you follow the vehicle appraisal guidelines your insurer requires so they don’t refuse to settle your claim.

For those with towing add-on coverage, you can have your vehicle towed. However, request the mechanic not to repair any damage until you clear the vehicle with your insurer.

Step 7: Contact a Commercial Semi-Truck Accident Lawyer

Consult a qualified semi-truck accident attorney before reaching out to your insurance company. The lawyer will help you identify the legal routes you can take and how much in settlement you deserve. Your legal team can also help you handle multiple insurers and deal with any lawsuits you may face.

Step 8: Alert Your Insurance Company

Once you know your legal stand, alert your insurance company and file a claim. Ensure you do this within the time frame specified by your insurer to avoid denial of coverage.

You may also want to file settlement claims with the insurers of all the parties responsible for the accident if you were not at fault. These may include your trucking company, vehicle manufacturers, repair companies, government entities, etc. It’s best to let your lawyer handle this so you can get maximum compensation from each party.

Step 9: Complete Repairs or Get a New Semi

The last step is to get your truck repaired to get back on track. You can also opt to purchase a new semi if the one you have is irreparable. Mission Financial Services can help finance your commercial vehicle loan repairs or new semi-truck purchase. Here’s a step-by-step guide on financing a semi-truck you can follow to get the help you need.

Conclusion

It’s worth emphasizing that you should avoid talking to the representatives of insurance providers (including your own) before consulting your lawyer.

Insurers almost always put their interests first, and they’ll offer less than you deserve. This will happen from when the accident occurs until a fair settlement is reached, so you must stay vigilant throughout.

For more information on financing your truck’s repairs or buying a new one after a truck accident, contact us at Mission Financial Services. We are always ready to help you get your life back on course and can customize our financing options to your specific situation.

What to Do in an Accident With Semi Truck

As a truck driver, you’ll need to know precisely how to deal with a semi-truck accident if one happens.

While it’s essential to know how to avoid accidents in the first place, accidents still happen all the time. Nearly 388,000 truck accidents happen annually across the U.S.

If you can’t prevent the accident from taking place, the best thing you can do is to deal with the accident as efficiently as possible. Each accident is different and will come with its challenges. However, the same general process can be followed after an accident occurs.

Here are the steps you should follow if you’ve experienced a semi-truck accident.

What to Do in an Accident With Semi Truck: Steps to Follow

Check for Injuries

First and foremost, check yourself and others involved for any injuries. While there’s much to consider during a truck accident, safety should always be your priority.

If anyone is injured, call 911 immediately to request immediate medical attention. Even minor injuries should be reported, as a complete medical evaluation may reveal the injuries to be more severe than suspected.

Identifying possible injuries will also help you understand how best to deal with the truck accident in terms of moving vehicles and clearing up any wreckage.

Once emergency services have been notified about any injuries, you can move on to dealing with the semi-truck accident.

Move to Safety

If possible, move your vehicle to the side of the road or a safe location to avoid further accidents. Turn on hazard lights to alert other drivers.

This isn’t possible for some truck accidents, and it’s not a good idea to try to move any vehicles if they’re in hazardous situations. However, if your vehicle is alright and you can clear the road without causing any harm, then try to do this.

Before moving the vehicle, though, you’ll want to take pictures of the car accident. This is important for the truck accident investigation – more on this later.

Call Law Enforcement

Once the scene is as safe as possible, the next step is to alert the authorities about the truck accident.

Contact the police to report the accident, even if it’s minor. Having an official report can be valuable for insurance claims and legal purposes. If you’re a truck driver who crosses state boundaries, it’s wise to know which local law enforcement numbers to call for each state you travel through.

Exchange Information

You’ll need information to contact the other driver’s insurance company. Make sure you exchange this information before departing the scene of the accident.

Exchange contact, insurance, and driver’s license information with the other driver. Include their company name, contact number, and any relevant details. Semi-truck accidents can sometimes be tricky to report and follow through with insurance, but having the other driver’s contact details will help the process.

Gather Evidence

An essential part of dealing with a semi-truck accident is gathering enough evidence to report the accident to your insurance company.

If it’s safe to do so, take photos of the accident scene, the positions of the vehicles, any damage sustained, and road or weather conditions. Taking videos with your mobile phone will also be useful.
The more detailed your documentation is, the better, as this will all help make the insurance claims process go faster. So, take your time carefully documenting the scene of the accident.

Obtain Witnesses

If there were any witnesses to the accident, ask them for their contact information. Their statements can provide valuable support for your case.

While this isn’t always possible or necessary, having an extra witness statement is always helpful to help with any legal claims or police reports.

Limit Communication

While exchanging information with the involved parties is essential, avoid discussing fault or assigning blame at the scene. Stick to the facts when talking to the police, other drivers, and witnesses.

Always try to keep a cool head and focus purely on the accident and how best to deal with it. While your emotional condition can be difficult after a semi-truck accident, staying calm and collected will make the process easier to manage.

Contact Your Insurance Company

As soon as you’ve dealt with the accident, notify your insurance company about what happened. They will guide you on the necessary steps for filing a claim and getting compensation.

Having reliable insurance is one of the most essential parts of starting a trucking company. Once you’ve found the right commercial truck insurance provider, ensure you know how to reach them in an emergency.

Seek Medical Attention

Even if you don’t feel seriously injured, seeking medical attention after an accident is always advisable. Some injuries might not be immediately apparent and could become more significant as time passes.

Avoid Settlement Agreements

While this differs from case to case, it’s generally best to avoid settlement agreements immediately.

Do not sign any settlement agreements or release forms from the trucking company or their insurance representatives without consulting your legal counsel. Make sure you deal with a lawyer when going through settlement negotiations. This will help you get the best deal and compensation for your situation.

You must consult an attorney if the accident resulted in significant injuries, damages, or disputes. Try to consult with a personal injury attorney specializing in commercial vehicle accidents. They often offer a free consultation – so make use of these.

Conclusion

Semi-truck accidents may be the last thing you’ll ever want to deal with. However, they sometimes cannot be avoided.

Knowing how to deal with these accidents will help you get through the accident faster and safer. Following the proper steps will also make it easier to get an appropriate settlement after the accident.

If you need to purchase a new semi-truck, you may need to find the right financing solution to make it happen. Get in touch with us at Mission Financial Services, where we help all kinds of commercial truck drivers access the financing they need to purchase a semi-truck.

Commercial Vehicle Accident Lawyers You Should Know About

Navigating a car accident involving commercial vehicles is often challenging. Still, the right commercial vehicle accident lawyers can make things less complicated.

With the right commercial car accident lawyers, going through the claims process to get adequate compensation from an insurance company becomes simple. The lawyers guide you while handling almost everything on your behalf.

There are two types of commercial vehicle accident lawyers you should know about. We discuss this in detail below and share a few insights on what to consider when looking for a commercial vehicle accident lawyer.

Commercial Vehicle Accident Lawyers: Why Do You Need One?

If you find yourself in an accident involving commercial vehicles, the two types of commercial accident lawyers you can turn to for help in seeking compensation include:

Regular car accident lawyers
Commercial truck accident lawyers

Both types of accident lawyers fall under the category of personal injury lawyers. Still, they differ in terms of the cases they work on.

Regular car accident lawyers work on all vehicular accident cases, including those involving commercial motor vehicles like buses and taxicabs. In contrast, commercial truck accident lawyers specialize in truck accident cases.

For accidents involving commercial trucks, such as semi-trucks, tanker trucks, and delivery trucks, it’s best to get an experienced truck accident lawyer instead of a regular car accident lawyer.

Why You Need Commercial Truck Accident Lawyers for Truck Accident Cases

You should get experienced trucking accident lawyers for all truck accident lawsuits and not any other type of personal injury lawyer for the following reasons:

Truck Accidents Are Fatal

The size and weight of large trucks make truck crashes more fatal than accidents involving other vehicles. Truck accident victims may suffer life-changing injuries requiring immediate medical attention and additional long-term treatments.

An experienced truck accident attorney is better positioned to calculate the amount of settlement you deserve based on the damages incurred. These may be:

Economic damages: These include current and future medical expenses, lost wages, loss of earning capacity, property damage, and legal fees.
Non-economic damages: These include mental anguish, fear, anxiety, and any other emotional pain and suffering experienced because of the accident.

Truck accident attorneys can also help you access medical treatment on a lien basis if you cannot pay for medical expenses upfront.

Truck Accidents Are Complicated

Semi-truck accidents happen due to a combination of factors. This means more than one party might be legally responsible for an accident involving large commercial vehicles.

For example, a truck crash may occur due to driver error. Say the truck driver failed to stop on time and collided with other commercial vehicles. The error might have happened because the truck driver was asleep or the vehicle malfunctioned.

In this case, four different entities might be liable for the truck crash:

The truck driver: Was the driver driving under the influence?
Truck company: Did they require the truck driver to be on the road for too many consecutive driving hours, leading to driver fatigue?
Truck manufacturer: Did the malfunction occur due to a manufacturing defect?
Truck maintenance company: Did the malfunction happen as a result of poor maintenance?

It’s easier for experienced commercial vehicle attorneys to identify all the parties responsible for the truck collision above and pursue compensation from each one.

Regular personal injury lawyers might find this challenging. So, your chances of getting maximum compensation from multiple liable entities are higher when you get a trucking accident lawyer.

Tractor Trailer Accident Cases Are Tedious and Time-Consuming

The stakes are higher in trucking accident cases than in other personal injury cases. Because of this, insurance companies usually employ underhand tactics to make truck accident victims settle for less than they deserve.

Some of these tactics include intimidation and delayed responses to an accident claim. Truck companies might also put up a fight. They’ll try to interfere with the case by wiping out evidence incriminating them or their commercial drivers.

You need aggressive legal representation to handle several insurers of all liable parties identified in a truck accident claim. This can be tedious, time-consuming, and overwhelming for regular car accident lawyers. On the other hand, commercial truck accident lawyers have mastered truck accident law. They can help you quickly navigate trucking accident cases.

What to Look For in a Commercial Vehicle Accident Lawyer

Consider the following factors to find the best truck accident lawyers when you need one:

Detailed Free Consultation

Most law firms offer free case evaluations for truck crash victims. You can always tell how much effort an accident law firm will put into your case from how they handle this initial free consultation.

Experience

An accident law firm handling sizable commercial truck accident cases for decades likely has more experience than a newly established truck accident law firm.

History of Success

How many truck wreck cases has the commercial vehicle accident attorney worked on, including those they’ve taken to trial and succeeded? The answer to this question is often a good indicator of a lawyer’s expertise.

Availability of Resources

Proving fault in commercial truck accidents requires resources. You want to ensure your legal team has enough resources to handle your case. The right resources should include expert witnesses like economists, truck accident reconstructionists, and trucking industry investigators.

Fees

Ensure you understand how a law firm charges for their services before you work with them. Usually, truck accident attorneys operate on a contingency. They’ll take a cut from your settlement.

Final Thoughts

Accidents involving semi-trucks are common even though FMCSA enforces strict safety regulations for trucking companies and their commercial drivers. Their impact is devastating and can lead to severe injuries that affect your work.

You need a qualified commercial truck accident lawyer to help you get the settlement you deserve for all damages incurred in a crash. This might not remove the pain, but it can ease the financial burden of dealing with the aftermath. So, you can focus on bouncing back.

To learn more about finding the right semi-truck accident lawyer for your case, check out our blog.

How Many Semi-Truck Accidents Per Year Are There? (+Other Safety FAQs)

Large trucks account for only 5% of the total number of vehicles on the road, yet they cause a significant number of fatal crashes yearly.

Exactly how many semi-truck accidents per year is concerning.

Nearly 388,000 truck accidents happen annually across the U.S., and the aftermath of these truck crashes ranges from various injury levels to death.

Commercial truck accident statistics from the National Safety Council (NSC) reveal that in 2021, almost six thousand people lost their lives in crashes involving large trucks. A further 155,000 were injured.

This article explores essential commercial truck accident statistics you should know. We discuss how, as a trucker, you can prevent big truck crashes and keep our roads safe.

Important Semi-Truck Accidents Statistics To Know

When a truck crashes, the occupants of other vehicles are the ones who suffer life-changing injuries or lose their lives.

According to a publication by the US Department of Transportation summarizing truck accident statistics, there was a 17% increase in fatalities from trucking accidents in 2021, with 72% of the deaths being passenger vehicle occupants, 17% being large truck occupants, and 11% being non-occupants.

The number of people injured in large truck accidents also increased by 9% between 2020 and 2021 with 71% being passenger vehicle occupants, 27% being large truck occupants, and 2% being non-occupants.

Occupants of passenger cars are more vulnerable to truck crashes. As a trucker, you are responsible for your safety and the safety of other vehicle occupants and road users.

Drivers of tractor-trailers, in particular, need to be more careful than other large truck drivers as 74% of the deaths from truck-related crashes in 2021 were due to fatal accidents involving tractor-trailers.

The remaining truck fatalities resulted from severe accidents involving single-unit trucks. This shows that tractor-trailers are the most dangerous commercial vehicles on our roads.

When and Where Do Most Large Truck Accidents Happen?

Further interesting truck accident statistics from the National Safety Council report indicate when and where most truck-involved accidents happen. Understanding this is crucial so you know when to be extra cautious when driving.

Most truck accidents (73.99%) happen on non-interstate roads. This means interstate highways are the safest for large truck drivers, although some truck accidents (26.01%) still occur on these roads.

The summary of semi-truck accident statistics also shows most fatal accidents occur during the day (63.54%) compared to nighttime (36.46%). Fatal accidents where most car occupants died in 2021 also happened during weekdays – between 6 am and 6 pm.

To reduce the number of motor vehicle crash deaths involving large trucks; truck drivers need to pay extra attention when driving on non-interstate roads during the day, especially between 6 am and 3 pm.

What Causes Semi-Truck Accidents?

Semi-truck accidents can result from a variety of factors, often involving a combination of human errors, mechanical issues, environmental conditions, and other contributing factors. Some common causes of semi-truck accidents include:

Truck Driver Error

Large truck drivers have very little room for errors compared to passenger vehicle drivers. There’s also little leeway to correct mistakes once made, leading to fatal accidents.

For instance, a fully loaded tractor-trailer requires about 40% more space to stop than other passenger vehicles. So, avoiding an accident becomes almost impossible if a semi-truck driver fails to accurately calculate the distance needed to stop. Passenger vehicle drivers, on the other hand, don’t face similar issues.

Driver Fatigue

Despite strict hours-of-service regulations from the Federal Motor Carrier Safety Administration (FMCSA), many large truck drivers work long hours. They experience fatigue, are more likely to sleep behind the wheel, and cause fatal crashes.

Driving Under Influence

Alcohol and other street drugs impair truck drivers’ ability to drive safely. Often, truck drivers become drowsy or slow to react to various road conditions. The chances of drivers causing truck collisions or multiple-vehicle crashes when under the influence are high.

Distracted Driving

Distracted driving occurs when a tractor-trailer driver or drivers of other passenger vehicles use their phones or other hand-held devices while driving. Existing laws in most states prohibit car drivers from doing this. However, some truck drivers still take their eyes off the road to use their phones, and cause fatal accidents.

Vehicle Issues

Several vehicle issues, like tire defects and brake problems, can lead to fatal truck accidents. Fatal crash data from a truck causation study conducted by FMCSA lists brake issues as a top cause of fatal accidents.

Roadway Issues

Sometimes, big rig accidents link back to road conditions. Poor or unmaintained roads with large potholes, missing signage, or faint roadway markings put truckers and other passenger car drivers at risk.

For example, a truck driver may fail to see critical signage on an unfamiliar road leading to driver error which can cause a crash with several passenger vehicles.

Tips For Minimizing Truck Accidents

Although car accident statistics from the National Highway Traffic Safety show an increase in fatalities from motor vehicle crashes, there’s hope that things will change. The Department Of Transportation created a detailed national roadway safety strategy to ensure this happens.

As a truck driver, you can also play your part in minimizing vehicle crashes and truck fatalities by:

Maintaining your truck regularly to identify and deal with any issues early
Being keen on the road to avoid grave errors that may lead to truck fatalities
Avoiding using your phone while driving
Resting. Follow the hours-of-service recommendations by FMCSA.
Don’t drink and drive.

Conclusion

Most large trucks are heavy, with a gross vehicle weight rating of over 26,000 pounds. So motor vehicle accidents involving large trucks are often more fatal than those involving other commercial vehicles. This is why truckers have to be more vigilant on the road.

If you get involved in a truck accident, remember you can get compensated for any injuries sustained. Our guide on what to do after a semi-truck accident explains all the steps you should take to get compensation.

We’ve also put together helpful information to help you find the right semi-truck accident lawyer if you ever need one. Please read our blog to learn more and to stay updated with the latest news in the trucking industry.

How Much Is Commercial Truck Insurance?

The cost of commercial truck insurance can vary widely depending on many factors. These factors include the type of trucks, their usage, the driving records of the drivers, the geographic location of the business, the amount of coverage needed, and the deductible chosen.

Generally, commercial truck insurance can range from several thousand to tens of thousands of dollars annually per vehicle.

In this article, we discuss how much you’re likely to pay for different types of commercial truck insurance. We also offer tips for keeping your insurance costs low without compromising coverage quality.

What is the Cost Of Different Types of Commercial Insurance Coverage?

There are several major types of commercial truck insurance coverage. Some are required by law, and you cannot run your trucking company without them. Other types are not legally required but are essential to protect your trucking business from losses due to legal claims in the event of an accident.

Here is a summary of the insurance costs for different types of Insurance coverage:

Primary Liability Coverage

Primary liability is the minimum liability coverage all trucking business owners, including autonomous commercial truck drivers, must have. Costs range from $5,000 to $7,000 (about $500 average monthly) for owner-operators with their authority.

If you’re an owner-operator working with a motor carrier, the law requires your motor carrier to cover these costs.

Usually, primary liability includes bodily injury and property damage liability as one. This way, it covers the medical expenses of victims injured in an accident caused by your semi-truck and offers compensation for any physical damages.

Physical Damage Coverage

You’ll pay between $1,000 and $3,000 (or $100 to $300 monthly) on average for physical damage insurance. These costs vary significantly because physical damage insurance payments are often calculated as a percentage of the truck’s total value.

All the same, this is essential coverage because of its comprehensive nature. It protects your semi-truck from damages as a result of collisions, vandalism, theft, and even harsh weather conditions.

General Liability Coverage

General liability insurance is not as costly as primary liability insurance, yet it can help your commercial trucking business save money. You’ll pay approximately $500 – $600 minimum per year, although this cost can be much higher.

General liability insurance covers you for more than accidents involving your trucks. It covers you for any damages or injuries related to your trucking business. Say a customer falls and gets injured on your business premises. You won’t have to pay their medical bills out-of-pocket if your commercial truck insurance policy covers general liability.

Non-trucking Liability Coverage

Non-trucking liability protects you when using your semi-truck for purposes other than work. It costs about $400 annually on the lower end but might be as much as $1644.

Bobtail Insurance

Bobtail insurance covers owner-operators who sometimes drive their semi-truck without its trailer in tow. It’s a requirement by most motor carriers. It might be necessary for for-hire truckers operating on a lease with a motor carrier. This insurance costs between $300 and $400 annually.

Motor Truck Cargo Insurance

Cargo insurance costs vary according to the type of cargo you haul. The standard cargo coverage limit is about $100,000. Still, some shipping companies require owner-operators to get up to $1M in coverage.
For $1M cargo coverage, you might pay as little as $400 per year or as much as $1,800.

Umbrella Insurance

Umbrella insurance for semi trucks acts as an extra layer of protection in case you are involved in a severe accident or lawsuit.

The average cost for this type of insurance is $5000 to $7000 per year. But the cost of umbrella insurance for semi trucks can vary widely depending on several factors including risk factors such as the routes you drive and your driving history.

Other Factors Affecting Semi-truck Insurance Costs

Understanding the factors that influence the cost of commercial truck insurance gives you insight into what insurance providers consider when setting their rates. Here are some critical factors that determine your semi-truck insurance cost.

Federal & State Regulations

The Federal Motor Carrier Safety Administration (FMCSA) sets regulations all truckers must comply with to operate. At the same time, states set their minimum coverage limits for commercial truck insurance.

These regulations guide how insurance providers create their trucking insurance policies and premiums.
For instance, an owner-operator in Nebraska pays higher semi-truck insurance costs than one in New Jersey because the two states have different minimum coverage limits.

Vehicle Specifications

Your vehicle specifications and overall condition, including the vehicle type and truck’s weight, determine your cost of commercial insurance. You’ll pay more to insure heavy trucks. The size and value of your fleet also matter. You might pay less if you insure your entire fleet as a bundle.

Type of Goods Hauled

Trucking insurance for hauling hazardous materials costs more than similar insurance for transporting non-hazardous goods.

Radius of Operation

If trucks travel longer distances or cover more miles, your insurance costs will be higher. This is because the chances of an accident increase the longer the truck is on the road.

Experience of Truck Drivers

You pay less for commercial insurance if you work with experienced truck drivers with clean driving records.

Credit History

A good credit history helps you qualify for affordable commercial truck insurance rates.

Coverage Limits & Deductibles

When a claim is made (deductible), the out-of-pocket amount affects your truck insurance costs. When choosing a high deductible and low coverage limit, you pay less for commercial truck insurance.

Tips for Reducing Insurance Costs and Keeping Them Low

Maintain a clean driving record.
Monitor your credit reports to ensure you maintain a good credit history.
Reduce the distance covered by avoiding unnecessary trips and finding efficient routes for making the necessary trips.
Consider getting a bundle commercial insurance package, where you combine all your liabilities and get one heavy trucking insurance package to cover them all.
Ask for discounts, especially when insuring an entire fleet.
Consider getting usage-based insurance. It’s cheaper. Check out our guide on usage-based insurance to learn more about this.

Conclusion

Remember, commercial auto insurance is not the same as commercial truck insurance. Auto insurance includes other types of commercial vehicles like buses, whereas truck insurance is specific for commercial trucks.

You must get the right insurance for your trucking company. Operating without proper insurance can lead to severe penalties, fines, and even the suspension of your business operations.

You may want to consider getting help from a licensed insurance agent to find the best commercial insurance to cover your specific business adequately.

If you have any questions on commercial trucking insurance, give Mission Financial Services a call. We are always ready to help!